Minister of Finance Enoch Godongwana has noted the resignation of his deputy, David Masondo, as chairperson of the Public Investment Corporation (PIC) and confirmed a major overhaul of the PIC board following recent governance challenges.
The PIC manages more than R2.5-trillion in pension funds for government employees and other public assets.
Minister welcomes Masondo’s decision
In a statement issued on Friday, the minister thanked Masondo for his service and commended his decision to step aside. “The minister… commends his decision to step aside as both good and necessary, given the governance challenges confronting the institution,” the ministry said. Masondo resigned on Wednesday, saying he was doing so “in the interests of the Republic of South Africa” to protect the stability of the PIC.
Five more board members resign
Minister Godongwana further noted the resignation of five board members following his request that all members either step down or make representations to him, as the representative of the sole shareholder, “explaining why they should not be removed”.
This comes after the earlier resignation of two board members following the suspension of the PIC’s chief executive, Patrick Dlamini.
The wave of resignations effectively clears the way for a new board at the state asset manager. A new board is to be appointed in line with the PIC Act.
“The minister will, in consultation with the cabinet, appoint a new board as stipulated in Section 6 (1) of the PIC Act,” the statement said. Godongwana underscored the PIC’s critical role: “As a state-owned asset manager, it carries a dual mandate of delivering commercial performance while safeguarding public interest. It also plays a vital role in the economy, and any instability in the institution poses systemic risk to the economy.”
The minister said he will provide “further detailed information to the public and all stakeholders once consultations are completed and a new board is appointed”.
- Deputy chairperson of the Public Investment Corporation (PIC), David Masondo, has resigned amid governance challenges.
- Minister of Finance Enoch Godongwana thanked Masondo for his service and supported his decision to step down.
- Five additional PIC board members resigned after being asked to either step down or justify remaining on the board.
- These resignations follow earlier ones, including two board members after the suspension of PIC’s CEO, Patrick Dlamini.
- A new PIC board will be appointed by the minister in consultation with the cabinet, emphasizing the institution’s dual mandate and economic importance.
